Merkel rejects quick solution to EU crisis - Gayo Lues

“There is no quick solution and no simple solution. There is no one magic formula … with which the government debt crisis can be overcome in one go,” Merkel said in an address at the German parliament on Wednesday.

The German official also brushed aside the idea of pooling European debt through eurobonds and called for monitoring and discipline to contain the crisis.

Expressing her opposition to issuing eurobonds as tool to pool eurozone debt, she further noted that, “Quite apart from the fact that instruments such as eurobonds, euro bills, debt redemption funds and many others are constitutionally impossible in Germany, I consider them wrong and counterproductive.”

The development comes as the German official is under pressure from France, Spain and Italy to agree to pool eurozone debt.

Eurobonds could reduce borrowing costs for eurozone struggling economies, like Spain and Italy, but they could increase them for Germany and some others.

Ahead of the summit, top European officials have developed a plan that proposes a “medium term” move towards eurobonds, as well as the creation of a banking union with a single authority.

This is while Merkel insists that Europe must tackle its heavy debts in a step-by-step process and believes “supervision and liability must go hand in hand.”

Europe’s leaders will come together in Brussels on Thursday and Friday under intense global pressure to contain the eurozone‘s debt crisis that has rattled global markets over the recent months.

The summit is aimed at hammering out a roadmap for tightening European integration and heading off a potential economic collapse.

There are fears that the escalating debt crisis in the eurozone could drag the world economy down.

MR/JR